For many years, the cost of acquiring software licenses for your company was very high, you analyzed all those that fit your needs and used at least 5 years, is the average to recover your investment and get the most out of it.
Currently changing the way to market licenses, acquiring perpetual licenses is being left in the past welcoming the subscription model.
In the software industry there are more and more options for software that offer a subscription license, offer better payment options that fit your budget and you have many options to decide which is the best and lowest cost. This means there is benefit on both sides: between users and developers.
There is always the doubt as to what best suits the company in terms of software, whether it is an Administrative System, ERP Software or some System to Bill Online, the analysis of costs and yields is of paramount importance, in the issue of subscriptions still unknown models and users still decide to invest for perpetual licenses.
Little by little they are betting on this model, it is cheaper to pay smaller amounts to control the flow of money each month and really pay when you need the service, regardless of obtaining any fine or surcharge for not making the payment for a month.
Software companies are adapting to the taste of consumers by offering the subscription option that has been on the market for several years, more and more companies are joining by not wanting to pay a license forever, the reason are high costs and especially the guarantee that it will not be for life.
What is a license?
Most people who buy a license have the idea that when you buy one, the software belongs to them.
That’s why many development companies invest significant sums in their marketing campaigns to raise awareness of users to pay for upgrades, is the case of any ERP system when you buy licenses sign contracts where you agree to make the annual payment of these.
When you acquire a license of any kind you are acquiring the rights of use, that is why the payments of updates and annual maintenance are made.
Each software provider has its own conditions and it is your duty to analyze which one is best for you. The investment in licenses of any software is really high, the modalities of acquisition are: perpetual licenses or subscription licenses.
- Perpetual software licenses, are those that allow you to install the software on a single computer, this is your property or can be managed by a single user, the software is accessed from it without having to configure Client-Server access. You need to invest more at the beginning but it is a single payment, perpetual licenses must be purchased upgrades and technical support separately.
- Subscription licenses, with this business model the barriers are being eliminated for the companies that need a software to be able to control, administer and grow a company. In other words, it is an option to rent a program and pay for it the way you want, providers offer monthly, quarterly or annual options (the one that best suits your economic needs).
For entrepreneurs the investment capacity is limited, its nature is to seek resources to move forward and the flexibility of the subscription model is a great advantage for them.